"Intelligence," Corporatism, and the Dance of Death

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****************************************************************************** by Arthur Silber

You may at first think the following is a bad joke, but I assure you it is not a joke at all. At the very end of this NYT story about Booz Allen and the complex interconnections between nominally "private" business and the national intelligence community, we read:

But the legal warnings at the end of its financial report offered a caution that the company could be hurt by “any issue that compromises our relationships with the U.S. government or damages our professional reputation."

By Friday, shares of Booz Allen had slid nearly 6 percent since the revelations. And a new job posting appeared on its Web site for a systems administrator in Hawaii, “secret clearance required.”

Yes, that appears to be Edward Snowden's old job.

Crappy spy fiction doesn't look quite so crappy now, does it? In many respects -- in fact, I would argue in every critical respect -- the spy business is actually that dumb.

In an earlier post about the NSA/surveillance stories, I discussed the profoundly offensive elitism involved in the argument that "special" people in both government and journalism, people endowed with understanding and judgment that is the envy of the gods and forever denied to all us ordinary schlubs, should decide what information will be provided to the motley mass of humans who merely pay for all of it, and for whose benefit all this godlike work is supposedly undertaken. Talk about idiocies: "We're doing all this for you! You're too stupid to be told most of what we're doing!" Put it on a bumper sticker, baby, so we can throw rotten eggs at it.

I also talked about how especially unconvincing the insistence on secrecy is, given the numbers of people who have access to Top Secret information. The NYT story helpfully offers some numbers. Booz Allen "boasts that half its 25,000 employees have Top Secret clearances..." Wait, that's nothing:

Of the 1.4 million people with Top Secret clearances, more than a third are private contractors. (The background checks for those clearances are usually done by other contractors.)

The biggest open secret all these creepy jerks are hiding is the secret of corporatism (or what Gabriel Kolko calls "political capitalism"):

There is nothing in the world that can't be turned into a huge moneymaker for the State and its favored friends in "private" business, at the same time it is used to amass still greater power. This is true in multiple forms for the fraud that is the "intelligence" industry.

The pattern is the same in every industry, from farming, to manufacturing, to every aspect of transportation, to the health insurance scam, to anything else you can name. In one common version, already vested interests go to the State demanding regulation and protection from "destabilizing" forces which, they claim, threaten the nation's well-being (by which, they mean competitors who threaten their profits). The State enthusiastically complies, the cooperative lawmakers enjoying rewards of many kinds and varieties. Then they'll have to enforce all those nifty regulations and controls. The State will do some of it but, heck, it's complicated and time-consuming, ya know? Besides, some of the State's good friends in "private" business can make a killing doing some of the enforcing. Give it to them! Etc. and so on.

It is for these reasons, among others, that I have stated:

[G]iven the nature of the State and its manner of operation, it simply isn't possible for any enterprise to become and remain notably successful ... without becoming enmeshed in the State apparatus. It's possible that a company may escape more complex involvement with the State in its early years, but if a company maintains its dominance over a significant period of time, it necessarily must be the recipient of State favoritism.

And so, as but one minor example, the Times tells us that "background checks for those clearances are usually done by other contractors."

But that's chump change. The real money is elsewhere -- in, for instance, foreign policy itself. You probably thought foreign policy was about dealing with threats to "national security," spreading democracy, ensuring peace, and whatever other lying slogans they throw around like a moldy, decaying, putrid corpse. The State's foreign policy efforts are unquestionably devoted to maintaining the U.S.'s advantages -- but the advantages they are most concerned about are access to markets and, that's right, making huge amounts of money. Despite the unending propaganda to the contrary, they aren't terribly concerned with dire threats to our national well-being, for the simple reason that there aren't any: "No nation would dare mount a serious attack on the U.S. precisely because they know how powerful the U.S. is -- because it is not secret."

How does the public-"private" intelligence industry make foreign policy? The NYT story offers an instructive example in its opening paragraphs:

When the United Arab Emirates wanted to create its own version of the National Security Agency, it turned to Booz Allen Hamilton to replicate the world’s largest and most powerful spy agency in the sands of Abu Dhabi.

It was a natural choice: The chief architect of Booz Allen’s cyberstrategy is Mike McConnell, who once led the N.S.A. and pushed the United States into a new era of big data espionage. It was Mr. McConnell who won the blessing of the American intelligence agencies to bolster the Persian Gulf sheikdom, which helps track the Iranians.

“They are teaching everything,” one Arab official familiar with the effort said. “Data mining, Web surveillance, all sorts of digital intelligence collection."

See how perfect this is? All the special people are making tons of money -- and, when the day arrives that the U.S. wants to ramp up its confrontational stance with Iran, well, there's the UAE helping to "track the Iranians" with all the tools that the U.S. has given them and taught them to use. And how easy would it be to get the UAE to provide the U.S. with just the right kind of new and disturbing "intelligence" that would get lots of people screaming about the "grave Iranian threat"? You know the answer to that: easy peasy. A wink and a nod -- and off the U.S. goes, with bombing runs or whatever it decides to do. But whatever it does will be determined in greatest part not by a genuine threat to U.S. national security (there is no evidence whatsoever to suggest that Iran's leaders are all suicidal), but by what will make the most money for the State and its good friends.

I remind you once again of what I call The Higgs Principle. As I have emphasized, you can apply this principle to every significant policy in every area, including every aspect of foreign policy. Here is Robert Higgs explaining it:

As a general rule for understanding public policies, I insist that there are no persistent "failed" policies. Policies that do not achieve their desired outcomes for the actual powers-that-be are quickly changed. If you want to know why the U.S. policies have been what they have been for the past sixty years, you need only comply with that invaluable rule of inquiry in politics: follow the money.

When you do so, I believe you will find U.S. policies in the Middle East to have been wildly successful, so successful that the gains they have produced for the movers and shakers in the petrochemical, financial, and weapons industries (which is approximately to say, for those who have the greatest influence in determining U.S. foreign policies) must surely be counted in the hundreds of billions of dollars.

So U.S. soldiers get killed, so Palestinians get insulted, robbed, and confined to a set of squalid concentration areas, so the "peace process" never gets far from square one, etc., etc. – none of this makes the policies failures; these things are all surface froth, costs not borne by the policy makers themselves but by the cannon-fodder masses, the bovine taxpayers at large, and foreigners who count for nothing.

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